Bank of America (NYSE:BAC) Earns "Outperform" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated an "Outperform" rating on Bank of America with a $59 price target, implying about a 9.2% upside; the analyst consensus is a "Moderate Buy" with an average target of $60.65.
• Q1 results beat estimates: BofA reported EPS of $1.11 (vs. $1.00 expected) and revenue of $30.27B (up 10.7% YoY), driven by a ~30% jump in equities revenue plus stronger NII and fees.
• Insider selling: Insiders sold 227,832 shares worth roughly $11.09M in the last 90 days, leaving insiders with about 0.27% ownership.

Bank of America (NYSE:BAC)'s stock had its "outperform" rating restated by investment analysts at Royal Bank Of Canada in a research note issued to investors on Thursday,Benzinga reports. They currently have a $59.00 price target on the financial services provider's stock. Royal Bank Of Canada's price objective indicates a potential upside of 9.16% from the company's previous close.

A number of other research analysts have also weighed in on the stock. Autonomous Res decreased their target price on shares of Bank of America from $62.00 to $54.00 and set a "neutral" rating on the stock in a research note on Monday, April 6th. Weiss Ratings reissued a "buy (b)" rating on shares of Bank of America in a research note on Tuesday, January 27th. Daiwa Securities Group decreased their target price on shares of Bank of America from $62.00 to $58.00 and set a "buy" rating on the stock in a research note on Tuesday, April 7th. Robert W. Baird raised their target price on shares of Bank of America from $56.00 to $58.00 and gave the stock a "neutral" rating in a research note on Thursday. Finally, Morgan Stanley decreased their target price on shares of Bank of America from $67.00 to $61.00 and set an "overweight" rating on the stock in a research note on Tuesday, March 31st. Twenty-two equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, Bank of America has a consensus rating of "Moderate Buy" and a consensus price target of $60.65.

Bank of America Trading Down 0.5%

Shares of Bank of America stock opened at $54.05 on Thursday. The firm has a market capitalization of $386.23 billion, a PE ratio of 14.17, a P/E/G ratio of 0.93 and a beta of 1.23. Bank of America has a twelve month low of $36.49 and a twelve month high of $57.55. The firm's 50-day moving average price is $50.53 and its 200 day moving average price is $52.23. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 1.15.

Bank of America (NYSE:BAC - Get Free Report) last released its earnings results on Wednesday, April 15th. The financial services provider reported $1.11 earnings per share for the quarter, topping analysts' consensus estimates of $1.00 by $0.11. Bank of America had a net margin of 16.23% and a return on equity of 11.07%. The business had revenue of $30.27 billion for the quarter, compared to analyst estimates of $29.72 billion. During the same period last year, the company posted $0.90 EPS. The business's revenue was up 10.7% on a year-over-year basis. On average, sell-side analysts predict that Bank of America will post 3.7 EPS for the current fiscal year.

Insider Transactions at Bank of America

In other news, insider Thomas M. Scrivener sold 50,000 shares of the firm's stock in a transaction that occurred on Thursday, March 5th. The shares were sold at an average price of $49.82, for a total transaction of $2,491,000.00. Following the completion of the sale, the insider owned 227,973 shares in the company, valued at $11,357,614.86. This trade represents a 17.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider James P. Demare sold 83,832 shares of the firm's stock in a transaction that occurred on Wednesday, March 4th. The stock was sold at an average price of $50.00, for a total transaction of $4,191,600.00. Following the sale, the insider owned 307,240 shares of the company's stock, valued at $15,362,000. This represents a 21.44% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 227,832 shares of company stock worth $11,094,960 in the last 90 days. Insiders own 0.27% of the company's stock.

Institutional Trading of Bank of America

Hedge funds and other institutional investors have recently made changes to their positions in the company. Nations Financial Group Inc. IA ADV increased its holdings in Bank of America by 3.3% in the 1st quarter. Nations Financial Group Inc. IA ADV now owns 27,266 shares of the financial services provider's stock valued at $1,329,000 after purchasing an additional 874 shares during the last quarter. Aspen Investment Management Inc increased its holdings in Bank of America by 8.7% in the 1st quarter. Aspen Investment Management Inc now owns 34,653 shares of the financial services provider's stock valued at $1,689,000 after purchasing an additional 2,781 shares during the last quarter. J. Derek Lewis & Associates Inc. acquired a new stake in Bank of America in the 4th quarter valued at approximately $1,298,000. Purpose Unlimited Inc. acquired a new stake in Bank of America in the 4th quarter valued at approximately $65,000. Finally, Cornerstone Planning LLC acquired a new stake in Bank of America in the 4th quarter valued at approximately $4,250,000. Institutional investors and hedge funds own 70.71% of the company's stock.

Key Stories Impacting Bank of America

Here are the key news stories impacting Bank of America this week:

• Positive Sentiment: Q1 beat: EPS $1.11 and revenue ~$30.3B topped estimates, driven by a 30% jump in equities revenue, higher NII and strong wealth/investment-banking fees — the core reason shares are rising. Bank of America profit rises as trading shines
• Positive Sentiment: AI rollout for advisors: BofA introduced a new AI tool for its ~18,000 financial advisors, which could improve client servicing, productivity and AUM growth at Merrill/wealth units over time. Bank of America’s 18,000 financial advisors just got a new AI tool as the company posts a record quarter
• Positive Sentiment: Analyst upgrade: Keefe, Bruyette & Woods raised its price target to $64 and kept an outperform rating — a visible vote of confidence that supports further upside. Keefe, Bruyette & Woods price target raise (Benzinga)
• Positive Sentiment: Consumer and payments resilience: Card volumes grew ~7% and consumer flows topped $1T for the quarter, supporting fee income and NII potential if rates stay elevated. BofA’s Q1 Shows the US Consumer Won’t Flinch, Card Volumes Up 7%
• Neutral Sentiment: Debt management: BofA will redeem €1.5B of senior notes due 2027 on May 4 — a liability management move that’s routine but uses cash/capital. Bank of America Announces Redemption of €1,500,000,000 1.776% Fixed/Floating Rate Senior Notes, due May 4, 2027
• Neutral Sentiment: Corporate giving/PR: BofA announced a $5M founding sponsorship for the Theodore Roosevelt Presidential Library — positive for brand but not material to earnings. Commemorating America 250, BofA Announces $5M Founding Sponsorship
• Negative Sentiment: Fixed-income weakness and macro risks: Fixed-income trading underperformed and management flagged evolving economic/geopolitical risks that could pressure trading and credit trends. Monitor next-quarter NII and trading mix. Bank of America beats profit estimates as trading, wealth income drive growth
• Negative Sentiment: Investor sentiment downgrade: A BofA survey noted a sharp cut to global growth expectations — a reminder macro shocks can reverse the current tailwind for banks. Investors slash growth views by most in 4 years: BofA

Bank of America Company Profile

Bank of America Corporation is a multinational financial services company headquartered in Charlotte, North Carolina. It provides a broad array of banking, investment, asset management and related financial and risk management products and services to individual consumers, small- and middle-market businesses, large corporations, governments and institutional investors. The firm operates through consumer banking, global wealth and investment management, global banking and markets businesses, offering capabilities across lending, deposits, payments, advisory and capital markets.

Its consumer-facing offerings include checking and savings accounts, mortgages, home equity lending, auto loans, credit cards and small business banking, supported by a nationwide branch network and digital channels.

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